Faith Based Investing
Does your money reflect your values?
When it comes to your money and investing, what are the first thoughts that come to mind? For most, it's Wall Street, the Dow Jones, the stock market, and growing your finances without too much risk. Today's investment world is a much different place, though. The same companies and products that make your money grow are also the ones your money is supporting, whether your values line up or not.
Think of it this way: if a company is known for its paper products, most people want to know that the trees are being sustainably sourced and not tearing down entire ecosystems. The same can be said for virtually any other company in which you invest.
Values based investing
Various types of values based investing
Here are some of the different types of values based investing you may have heard of:
- Faith Based Investing
- Biblically Responsible Investing
- Values Driven Investing
- Ethical Investing
- Values Based Investing
- Socially Responsible Investing
- Sustainable Investing
- ESG Investing (Environmental, Social, and Governance)
- Impact Investing
All of these are different branches of the same tree. They all come down to the same idea: you are investing in companies that reflect your values instead of focusing only on growth. There are a few differences, though. The first half of the list is based on religious values, and the second half is based on secular values. There will be some overlap, but there are differences too.
What is faith based investing, and how did it get started?
Consumers and investors want to know what they are supporting, either directly or indirectly. Today's culture is more aware of not only what their financial assets are doing, but who they are supporting. Faith based investing has become more and more popular, especially in the Christian arena. As a Christian, don't you want to support God honoring companies that reflect Christian values? Because of this demand, there are now many options and opportunities for Christians to line up their investment portfolios with their biblical values.
Faith based vs. secular
How is it different from secular values based investing?
The primary difference
It's pretty simple: Christianity. Christian values can and do overlap with many secular values, but there is more to investing than just returns. Do the ends really justify the means, especially if you are supporting a company with anti-Christian values? It is God's money first and foremost, and we are just stewards of it ("The earth is the Lord's and everything in it," Psalm 24:1). Those in support of faith based investing believe the Bible gives us a responsibility to invest ethically, in companies that are not supporting anti-biblical values. See What the Bible says about finance. It is important to ask yourself whether what you are investing in is worth the moral implications.
What faith based investing supports
Caring for God's creation and ending human trafficking are both examples of causes that fall under both values based and faith based investing.
It is about supporting companies that are working toward positive change in our world, while avoiding companies that are negatively impacting the earth and its people.
What faith based investing avoids
The areas where you would see a divide are usually topics like abortion and LGBTQ rights. Faith based investments built on Christian values avoid these companies, while most secular values based investments would most likely still support them. Faith based investing also avoids companies involved in tobacco, gambling, pornography, and other anti-family values that go against biblical principles. Some secular investments might avoid these areas, but it's just as likely that they will not see anything inherently negative with these issues.
Moral screening
Where can you find "values based" companies?
At Christian Financial Advisors, we can provide you with a complimentary investment portfolio screening. It lets you see whether your current assets already line up with your biblical values, and discover those that are secular based and promote anti-Christian agendas. We use several tools to complete what we call a moral screening.
If you are ready to make the leap to faith based investing, before or after our moral screens, our team will create a portfolio for you that matches your risk tolerance while allowing you to make a positive impact on the world through your financial assets. It is incredible what modern technology allows us to do in glorifying God, even through our investments.
Is it right for you?
The primary argument against faith based investing comes down to how much responsibility we should take on. No one is perfect, and it is difficult to confront the entire world, its companies, and their shortcomings. If we don't invest in a particular company that goes against biblical principles, doesn't that also mean we should not shop there, and so boycott the business entirely?
If a business provides health insurance that supplies contraceptives and abortion care to its employees, should you boycott that business? What about only supporting companies that don't provide health insurance at all? That, in itself, is a failure to provide for employees. Even government tax dollars might support many anti-biblical values, but Jesus commands us to "Pay to Caesar what is Caesar's" (Mark 12:17). The argument can go on and on, presenting a never-ending dilemma. How do you make a choice? Where does the morality checklist end? It's all based on your personal convictions and beliefs.
How far do you want to go?
What you need to figure out is how far you want to go, and what you feel is your responsibility to God. It is an individual decision that you must feel convicted about. You can't control what the government does with your taxes, but you can control what your money supports through your investments.
Do what God calls you to do, not someone else. We all have different pursuits. Not everyone is meant to be a missionary overseas, but we are all meant to share the gospel. Whatever you choose, be faithful and obedient to God's calling. Faith based investing is just one way to show your dedication to Christ through the finances with which He has blessed you.
Keep exploring
Learn about the types of values based investing
Values Based Investing
Learn more →Socially Responsible Investing
Learn more →ESG Investing
Learn more →Green Investing
Learn more →Schedule an appointment
Talk with an advisor about a complimentary moral screening of your portfolio and how faith based investing could fit your plan.